Tim McCourt
Senior Managing Director, Global Head of Equities, FX and Alternate Products at CME
Executive
About Tim McCourt
Senior Managing Director, Global Head of Equities, FX and Alternative Products at CME Group since August 2024; previously Senior Managing Director, Global Head of Financial & OTC Products (June 2023–Aug 2024) and Senior Managing Director, Global Head of Equity & FX Products (Feb 2022–June 2023). He joined CME Group in 2013 after senior trading roles at JPMorgan (Equity Derivatives) and RBS (Americas Index and Delta One) and holds a BA in Political Science (Boston College) and an MBA (Wharton) . Company performance under CME’s 2024 plan included record revenue of $6.1B (+10% YoY), adjusted operating income $4.2B (+12%), net income $3.5B, adjusted operating margin 68%, and stock price +10% (TSR +15% including dividends) . Strategic accomplishments included launching U.S. Credit futures, E-mini S&P 500 Equal Weight futures, Bitcoin Friday futures, expanded micro-sized products, and shorter-term options, alongside cloud migration progress with Google and record international ADV of 7.8M (+14% YoY) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cincinnati-headquartered JPMorgan (New York) | Senior trading role, Equity Derivatives Group | ~10 years (pre-2013) | Built deep equity derivatives expertise relevant to CME’s equity index and options product strategy . |
| Royal Bank of Scotland (RBS) | Led Americas Index & Delta One trading book | Pre-2013 | Direct P&L and product structure experience in index/Delta One underpinning CME’s index futures franchise leadership . |
| CME Group | Executive Director, Equity Index Products; later Global Head roles as listed above | 2013–present | Product leadership across equity index, FX, crypto, interest rate, OTC, alt products; oversaw growth and product innovation . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| S&P Dow Jones Indices | U.S. Advisory Panel member | Ongoing | External market structure input; complements CME index product leadership . |
| CME Ventures | Investment Committee member | Internal (governance) | Investment vetting for venture portfolio aligned to CME strategic initiatives . |
Fixed Compensation
| Element | Structure/Targets | 2024 Outcome/Context |
|---|---|---|
| Base Salary | CME targets base salary at 50th percentile for role scope; reviewed annually for responsibility, contribution, market levels . | For NEOs as a group (not specific to McCourt), base salary comprised ~11% of total 2024 compensation . |
| Annual Bonus (cash) | Primary metric: Company “cash earnings”; committee may adjust for external events; funded only if threshold met; individual performance considered . | 2024 cash earnings achieved ~117.3% of target; NEO bonuses approved at 186.32% of target (no additional discretion) . |
Performance Compensation
| Instrument | Metric/Design | Weighting/Targets | Performance Period | Vesting & Other Terms |
|---|---|---|---|---|
| Performance Shares (PS-TSR) | Relative TSR vs S&P 500 | Target shares granted; payout range threshold–max | 2025–2027 for 2024 grants | For awards granted after Mar 1, 2024: double-trigger vesting on change-in-control (CIC); prior awards single-trigger; performance awards generally vest on actual performance over full term . |
| Performance Shares (PS-NIM) | Absolute net income margin | Target shares granted; payout range threshold–max | 2025–2027 for 2024 grants | Same CIC and performance measurement treatment as above . |
| Restricted Stock (RS) | Time-based | N/A | Typically annual September grant | For senior leadership, approved retirement may vest 75% of unvested RS at retirement; see retirement conditions below . |
Additional program guardrails and practices:
- Clawback/recoupment: in the event of a restatement per SEC rules; unvested equity can be recouped upon terminations for cause .
- No hedging; pledging of Class A shares prohibited for directors and executive officers; currently none of CME’s directors or executive officers have pledged shares .
- No option repricing or options below market value; no dividends on unearned performance awards .
Equity Ownership & Alignment
| Policy/Guideline | Requirement | Status/Notes |
|---|---|---|
| Stock ownership guidelines | CEO: 5x base salary; other named executive officers: 3x base salary; 5 years to achieve | As of 2024 review, all NEOs had satisfied guidelines; other senior management either satisfied or on track within 5 years . |
| Hedging/Pledging | Hedging prohibited; pledging prohibited for directors and executive officers | No pledges currently among directors or executive officers; waivers (if any) disclosed on website . |
| Recoupment (clawback) | Compliant with SEC rules for restatements; broader recoupment of unvested equity for cause | Implemented and maintained by compensation committee . |
Note: Beneficial ownership counts for Mr. McCourt are not disclosed in the 2025 proxy because he was not a named executive officer or director in 2024 .
Employment Terms
| Category | Key Terms |
|---|---|
| Severance plan (senior management not under employment agreement) | Severance pay equals 2 weeks per year of service; minimum 4 weeks; maximum 38 weeks for performance terminations, 52 weeks for position eliminations; potential bonus-in-lieu if eliminated after ≥6 months of service in year; possible health coverage continuation and outplacement; acceleration of RS that would vest during severance period; subject to release . |
| Retirement vesting (senior leadership awards since Sept 2021) | Approved retirement vests 75% of unvested RS at retirement; 25% of unvested PS continue to vest based on actual performance after period; conditions include: age ≥55, ≥10 years of service, 6 months’ notice, CEO-approved transition, and successful transition . |
| Change-in-control (equity) | Awards granted before Mar 1, 2024: single-trigger vesting (PS at greater of actual-to-date or target); awards after Mar 1, 2024: double-trigger vesting (CIC plus termination or non-assumption) . |
| Employment contracts | Used selectively; no cash severance >2x base salary; no tax gross-ups (except certain self-insured life benefits under CEO agreement); non-compete/non-solicit and release required; in 2024 only CEO had an employment agreement . |
Compensation Structure Analysis
- Mix emphasizes performance: For NEOs in 2024, equity and variable pay dominated (~85% of total pay); signals alignment with shareholder outcomes and CME-wide financial/operational targets .
- Metrics rigor: Annual cash bonus funded on cash earnings; 2024 payout factor strictly formulaic at 186.32% of target, with no committee discretion added; performance shares tied to TSR vs S&P 500 and absolute net income margin for 3-year periods .
- Governance enhancements: Transitioned from single- to double-trigger CIC vesting for awards granted after March 1, 2024 in response to investor feedback; maintains clawback and prohibits hedging/pledging—shareholder-friendly risk controls .
- Benchmarking: Compensation set against broad financial services and technology markets (no rigid peer target); base salaries targeted around median with larger performance-linked mix for roles with greater performance influence .
Performance Context and Track Record
| Metric/Highlight (CME, 2024) | Detail |
|---|---|
| Financial results | Revenue $6.1B (+10% YoY); adjusted operating income $4.2B (+12% YoY); net income $3.5B; adjusted operating margin 68% . |
| Market/volume | Record ADV 26.5M (+9% YoY); international ADV record 7.8M (+14% YoY) . |
| Equity/FX/crypto product innovation | Launched U.S. Credit futures, E-mini S&P 500 Equal Weight futures, Bitcoin Friday futures; expanded micro-sized equity/crypto products and weekly options expiries . |
| Capital/tech initiatives | Enhanced cross-margining with DTCC unlocking >$800M in capital efficiencies; progressed Google Cloud migration for clearing processes . |
| Shareholder returns | Quarterly dividend up 10% to $4.60 plus $5.80 variable dividend; $3.8B returned in 2024; stock +10% (TSR +15% incl. dividends) . |
Role evolution and recognition:
- Appointed Global Head of Financial & OTC Products in March 2023, expanding remit to interest rates, equity index, FX, crypto plus BrokerTec and EBS; the announcement referenced record 66.2M single-day contracts (Mar 13, 2023) reinforcing market leadership .
- As of August 2024, elevated to Global Head of Equities, FX and Alternative Products, continuing oversight of equity index, FX, cryptocurrency and alternative investment product strategy .
- 2025: Spokesperson in industry partnerships (e.g., FTSE Russell index derivatives license extension) reflecting leadership profile in equity index derivatives .
Equity Ownership & Alignment (Risks/Red Flags Checklist)
- Pledging/Hedging: Prohibited; no current pledges by directors or executive officers—reduces alignment risk .
- Clawback: Implemented per SEC rule—mitigates risk of unearned pay retention post-restatement .
- Option practices: No repricing; no sub-market option grants—limits governance risk .
- Tax gross-ups: No excise tax gross-ups—shareholder-friendly .
Employment Terms (Retention/Transition Considerations)
- Severance coverage through company policy (not a bespoke contract): tenure-based weeks with caps; potential bonus-in-lieu for role elimination; health coverage continuation and RS acceleration during severance window—balanced protection and retention .
- Retirement-friendly vesting (age/service/notice/transition conditions): supports orderly succession and knowledge transfer while tying PS to actual performance outcomes over full term .
- CIC treatment improved to double-trigger for new awards: reduces windfall optics while preserving retention during M&A .
Investment Implications
- Compensation alignment: Heavy emphasis on multi-year performance shares linked to TSR and net income margin, plus formula-driven cash earnings bonus, supports shareholder-aligned incentives for McCourt’s product P&L scope (equities, FX, crypto) .
- Selling pressure/vesting overhang: Annual September grants and 3-year PS cycles (2025–2027 for 2024 awards) create periodic vesting events; hedging/pledging prohibitions limit leakage risk; lack of disclosed McCourt share count suggests monitoring Form 4s for any sizable sales as triggers approach .
- Retention risk: Absence of an individual employment agreement means reliance on standard severance; however, retirement vesting and CIC double-trigger provide meaningful retention mechanics through multi-year performance cycles .
- Execution track record: Company-level 2024 records in volume, product innovation and returns align with McCourt’s remit, especially in equity/FX/crypto; continued product expansion (e.g., U.S. Credit futures) and partnerships (FTSE Russell) indicate sustained strategic execution catalysts .
Citations
External sources: CME management team page (biography/roles/education) ; CME press release on McCourt’s 2023 appointment ; FTSE Russell/CME license extension with McCourt quote .